I received a very curious email this morning from Amazon
Associates. For those who don't know,
the Amazon Associates program is basically a referral system, where Associates
get a small percentage of sales made from links they post. Examples can be found on my websites. All of the Amazon ads on www.martiningham.com
and www.martinus.us are part of the associates program. I don't make a lot of money from these
referrals, but some people rake in some serious cash from the program—a few
people even make their living this way.
As I said, I got a "curious" email. It seems Amazon.com is summarily canceling
all Associates accounts from people living in Maine. Here is what they have to say:
Greetings from the Amazon Associates Program.
We're writing from the Amazon Associates Program to notify you that
your Associates account will be closed and your Amazon Services LLC Associates
Program Operating Agreement will be terminated effective October 6, 2013. This
is a direct result of the unconstitutional Maine state tax collection
legislation passed by the state legislature and signed by Governor LePage on
June 5, 2013, with an effective date of October 9, 2013. As a result, we will
no longer pay any advertising fees for customers referred to an Amazon Site
after October 6, nor will we accept new applications for the Associates Program
from Maine residents.
Please be assured that all qualifying advertising fees earned prior to
October 7, 2013, will be processed and paid in full in accordance with your
regular advertising fee schedule. Based
on your account closure date of October 6, 2013, any final payments will be
paid by December 31, 2013.
While we oppose this unconstitutional state legislation, we strongly
support the federal Marketplace Fairness Act now pending before Congress.
Congressional legislation is the only way to create a simplified,
constitutional framework to resolve interstate sales tax issues and it would
allow us to re-open our Associates program to Maine residents.
We thank you for being part of the Amazon Associates Program, and look
forward to re-opening our program when Congress passes the Marketplace Fairness
Act.
Sincerely,
The Amazon Associates Team
When I asked Amazon about this issue, they were unable to cite the "unconstitutional" legislation in question,
but I assume they are referring to LD346, which mandates that online retailers
collect sales tax for any sale they make in Maine, even if said retailer is outside
of Maine. Yes, this is in violation of the interstate commerce clause of the
Constitution, so Amazon is correct to call it unconstitutional. What they don't tell you is that this
legislation does exactly what the Marketplace Fairness Act would do for every
single State! The MFA would mandate that
every seller collect sales tax for interstate sales; a logistical nightmare for
small sellers (like Martinus Publishing).
It is no secret that Amazon.com is a huge supporter of this
so-called "Marketplace Fairness Act," as it will empower
mega-businesses like them and place serious burdens on small retailers. Its constitutionality is questionable, and it
paves the way for a National Sales Tax, which is what some government officials have been salivating over for years.
It's more big-government BS in my opinion, and we don't need it.
I find it offensive that Amazon is attempting to terrorize
Maine Associates into becoming lobbyists for their cause. Their objective over this action is obvious
to anyone who stops to think about it.
They want Maine-based Associates to now write politicians (like Senator
Susan Collins) and beg them to support the MFA, aka the "Increase Amazon's
Marketshare Act."
This is just the start.
If this political lobbying works with Maine-based Associates, it'll set a
dangerous precedent, and Amazon will try it elsewhere. It's disheartening when big business tries to
bully the consumer this way, and we shouldn't support it. As a retail business, Amazon should spend
their resources trying to serve customers and sell products, not advance
Federal legislation.